The Ethereum price started a downward correction and traded below $2,000. ETH needs to stay above $1,920 to start a new increase in the near term.
- Ethereum corrects gains and tests the USD 1,920 support zone.
- The price is trading below $2,000 and the 100-hourly Simple Moving Average.
- A major bearish trendline is forming with resistance near $2,000 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a new rise if it breaks the $2,000 resistance zone in the near term.
Ethereum price provides important support
After struggling to clear the USD 2,120 resistance, Ethereum’s price started a downward correction just like Bitcoin. ETH traded below the USD 2,050 and USD 2,000 support levels.
However, the bulls were active above the USD 1,920 support zone. A low was formed around $1,933 and the price is now consolidating losses. It is trading near the 23.6% Fib retracement level of the recent decline from the $2,118 swing high to the $1,933 low.
Ethereum is now trading below $2,000 and the 100-hourly Simple Moving Average. The immediate resistance is near the $2,000 zone. There is also a major bearish trendline forming with resistance near $2,000 on the hourly chart of ETH/USD.
The next major resistance is at $2,025 or the 100-hour Simple Moving Average or the 50% Fib retracement level from the recent decline from the $2,118 swing high to the $1,933 low. A close above the trendline and $2,025 could mean significant upside.
Source: ETHUSD on TradingView.com
The next major resistance is near USD 2,075, above which the price could aim for a move towards the USD 2,120 barrier. Any further gains could trigger a wave towards the USD 2,250 level.
Lose more in ETH?
If Ethereum fails to break the $2,000 resistance and the trendline, it could start a new decline. The initial downside support is near the $1,950 level.
The next major support is $1,920. A downside break below the $1,920 support could trigger a sharp decline. In the mentioned case, Ether could fall towards the $1,850 support zone in the short term. Further losses could require a decline towards the USD 1,800 level.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
RSI per hour – The RSI for ETH/USD is now below the 50 level.
Major Support Level – $1,920
Major resistance level – $2,025
